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This study is principally designed to examine the changes in the efficiency, effective resource allocation and future operation strategies of Taiwan's international tourist hotel in global economic downturn. At first, we set up critical input and output factors and construct an assessment model using Data Envelopment Analysis (DEA) for analysis of relative efficiency. Further, we apply an allocative efficiency model for additional considerations of each input cost and analyse proper and effective resource allocation. Finally, there are significant changes in overall efficiency of international tourist hotels under global financial crisis. We can also reach an effective allocation of the overall resources. In such cases, lowering cost has become a key issue for sustainable operation of international tourist hotel. Finally, the greatest contribution of this study is to further classify the competitiveness and optimal cost allocation of Taiwan's international tourist hotels into seven categories based on the study results and propose strategic planning of future operations for hotel administrators’ reference in making improvements in the future. [ABSTRACT FROM PUBLISHER]

Taiwan's economic growth has improved the quality of life and raised the standard of the tourism industry in Taiwan. This paper selects the hotel industry, in order to assess how international tourist hotels operate their business by applying data envelopment analysis (DEA) to measure their operational efficiency and effectiveness. By using the DEA model to assess the results of the relative efficiency and effectiveness of hotels to improve their operations, the paper also aims to rank the hotels by applying the VlseKriterijumska Optimizacija I Kompromisno Resenje method combined with entropy weight among the criteria. [ABSTRACT FROM AUTHOR]